Annual Report 2021

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2021 116 The United Laboratories International Holdings Limited Annual Report 2021 25. TRADE AND OTHER PAYABLES (Continued) Note: These relate to trade payables in which the Group has issued bills to the relevant suppliers for future settlement trade payables. The Group continues to recognise these trade payables as the relevant banks are obliged to make payments only on due dates of the bills, under the same conditions as agreed with the suppliers without further extension. 26. CONTRACT LIABILITIES 2021 2020 RMB’000 RMB’000 Receipts in advances from customers – finished goods 107,955 78,125 At 1 January 2020, contract liabilities amounted to RMB59,733,000. The following table shows how much of the revenue recognised for the years relates to the contract liabilities at the beginning of the year: 2021 2020 RMB’000 RMB’000 Revenue recognised during of the year 78,125 59,733 When the Group receives an amount from certain new customers before products are delivered to and received by the customer, this will give rise to a contract liability at the beginning of a contract, until the revenue recognised on the relevant contract exceeds the amount received. The balance is mainly contributed from new customers.